STUDY OF GOOD VALUE ENGINEERING PRACTICE FOR INDONESIA

• Main Author: Ng, Andrew
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/50597
• Institution: Institut Teknologi Bandung

Value engineering (VE) is a systematic method that involves a multi-disciplinary team whose role is to identify and eliminate unnecessary costs for project implementation. The VE method plays a very important role in achieving value for money (VfM) and controlling costs within the scope of the project's life cycle cost (LCC) as it allows efficient innovation while still achieving the required functions. Despite its significant benefits, VE has not been maximally implemented in Indonesia. One of the contributing factors is the lack of knowledge about VE by consultants, contractors, private owners and the government. Therefore, it is necessary to conduct research on good practices of the VE method based on practices in other countries that can be applied in Indonesia to achieve the best value for the owner. This research begins by conducting a literature study to obtain good practices and enabler factors for VE implementation in the US and UK as well as the conditions for its implementation in Indonesia. Then, primary data was collected through surveys of practitioners and expert interviews to obtain an actual potrait of the conditions for VE implementation in Indonesia. After that, benchmarking was carried out by identifying gaps in the VE implementation in Indonesia, both good practice and enabler factors, to the US and UK. The findings on the conditions of VE implementation and problems from the gap identification process are then discussed with the findings from the survey and interview results to obtain suggestions for improvement of each enabler factors as well as applicable good practices. This research points out that VE has been applied to the public and private sectors in Indonesia, although there are various problems in its implementation. The problems in implementing VE in Indonesia, in general are the lack of understanding of the concept and benefits of VE by stakeholders and the lack of human resource capabilities. This can be seen from the misinterpretation of the application of VE as a method of cost reduction without paying attention to the increase in value and efficiency in the life cycle. Particularly in the public sector, apart from the above problems, the limited scopes coverage of regulation as a legal basis for implementing VE are also a problem. To overcome these problems, it is necessary to, first increase the understanding of VE by various stakeholders through promotion efforts, then increase human resource capabilities, improve aspects of the legal basis of VE, and finally compose a VE code of conduct that based on international standards as a reference for the implementation. After the above aspects have been fulfilled, good practice that can be proposed is the implementation of VE based on VE principles from international standards and the preparation of a broad VE program in the public sector.